Whistleblower Policies
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Why do businesses have Whistleblower Policies?
In March 2019, the Australian Federal Government introduced changes to the Corporations Act (2001) (the Act) in order to provide greater protections for Whistleblowers. The objective of the new law was to encourage ethical whistleblowing and discourage unethical, illegal, corrupt, fraudulent and other undesirable conduct, while holding employers accountable for protecting eligible whistleblowers. In July 2019 the whistleblower provisions were again expanded, including private sector coverage.
Whistleblower policies are an important element of corporate governance and assist in promoting an ethical corporate culture. They encourage employees to speak up and report any matters of concern.
Do you need a Whistleblower Policy?
The following types of companies are required under the Act to have a compliant whistleblowing policy:
- Public companies;
- Large proprietary companies (see below); and
- Proprietary companies that are trustees of registrable superannuation entities.
Are you a large proprietary company under the Act?
A company is deemed to be a large proprietary company if it has at least two of the following characteristics:
- revenue of the company and any entities it controls is $50 million or more;
- the value of gross assets of the company and any entities it controls is $25 million or more; and
- the company, and any entities it controls, has 100 or more employees.
What are the consequences if you don’t have a policy in place?
Failure to have a policy which complies with relevant legal requirements and current best practices relating to the protection of whistleblowers can result in penalties of up to $12,600.
What should be included in the policy?
To meet your obligations under the Act, your Whistleblower Policy must be publicly available and easily accessible for all employees and other persons engaged by the company. It must include:
- The protections provided to whistleblowers.
- Your commitment to recognising and upholding those protections.
- To whom disclosures should be made.
- How disclosures should be made.
- How the company will support whistleblowers and protect them from any detriment.
- How the company will ensure the fair treatment of employees who are mentioned in protected disclosures.
- How the policy is to be made available.
- Action the company will take to investigate disclosures.